05 May 2015

Nearing completion – what next for your finances?


Completing your build not only brings an element of satisfaction and achievement but it also signifies a new chapter in your financial obligations. Here, Rachel Pyne, Group Sales Director of BuildStore Ltd provides advice on what to do next.



Like the majority of self-builders and renovators in the UK, you will no doubt have sourced specialist funding for the duration of your build. Whether funds were released as arrears or advance-stage payments, you will have subscribed to specific terms and an interest rate that was probably higher than traditional high-street mortgage offers.

Once you complete your build and are overjoyed with reaping the benefits of your efforts, you must not get complacent where financial commitments are concerned.

At the time of writing this article, interest rates are at historic lows and the arrival of new lenders into the market make it highly competitive and attractive to those reviewing their mortgage arrangements. With variable rates almost halving over the past twelve months and cheap fixed rate deals, now is the time to consider taking advantage of these opportunities.

However, we are also in the throws of pre-election pledges and promises which could see anything from continued low mortgage rates and low borrowing costs to enhanced spending plans and higher borrowing costs.

Whatever the outcome, we strongly advise that an initial discussion with your financial adviser is conducted, preferably at least three months in advance of build completion, to ascertain the best possible onward financial solution that meets your individual requirements. Dependant on your self-build mortgage lender, you may be allowed to switch rate on completion – move onto a lower high street rate which could potentially save money each month. Additionally there may be a tie-in for two to three years, a switching fee or in best case scenario, be able to switch for free.

There is common belief that switching mortgage providers is complex and causes hassle with many thinking it much easier to ‘stick with what you know’. In addition to providing specialist self-build mortgage solutions, BuildStore operate a ‘whole of market’ policy. Our team of qualified, knowledgeable advisers are able to identify the best market rates for customers and ensure a smooth onward financial solution.

For some, this moment presents an opportunity to explore additional options whilst for others the familiarity of reverting to a previously-held mortgage arrangement is desirable. Take Oxfordshire self-builder Graham Garner. He was keen to move onto a previously held offset mortgage with Barclays upon build completion. However, when his application was declined, Graham turned to BuildStore for advice and assistance: “To my delight, BuildStore worked on my behalf, liaised with the Bank and came up with the goods – I now have a Barclays offset tracker mortgage, which is exactly what I wanted!”

Whatever stage you are at, we strongly recommend that you consult with a specialist financial adviser to get a clear and concise picture of your financial obligations and future security.

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